Pakistan to unveil five-year economic plan crafted by British economist

ISLAMABAD: Pakistan is all set to launch a comprehensive five-year economic plan, developed under the guidance of a British economist, aimed at revitalising the nation’s economy.

According to government sources, the plan, which is expected to be unveiled on August 14, will be inaugurated by Prime Minister Shehbaz Sharif.

The economic blueprint, named the “Stefan Dercon Plan,” outlines an ambitious roadmap with a target of achieving 6 per cent annual economic growth by 2028.

Earlier, Stefan Dercon, the policy advisor of the Foreign Commonwealth and Development Office (FCDO), along with members of the PM’s committee on homegrown economic development plan, held discussions with Pakistani authorities.

The Prime Minister’s Office had earlier expanded the committee’s membership for the homegrown economic development plan by including Prof Stefan Dercon and Dr Adnan Qadir Khan, FCDO’s chief economist to the economic forum.

According to the sources, the proposed economic plan has sought reforms to boost private investment and enhance exports, with a goal of reaching $60 billion in exports by 2028.

Sources said that the successful implementation of these reforms could generate one million new jobs annually.

Key components of the plan include strategies to reduce energy and business costs, as well as proposals to increase the tax-to-GDP ratio to 13.5 per cent and to expand investment and exports by 15 per cent. The plan also emphasises the importance of political stability for its effective execution.

Furthermore, the initiative proposes the transfer of technology from China to Pakistan, alongside efforts to bolster exports through joint ventures with Chinese firms.

The planning ministry has also unveiled its long-term 5Es framework, encompassing exports, e-Pakistan, environment and climate change, energy, and equity and empowerment—key focal points for Pakistan’s forthcoming development.

Under the rules of the business of 1973, economic planning is the job of the planning ministry but it has been overshadowed by an enlarged role of the finance ministry.

Pakistan and the International Monetary Fund (IMF) have already reached a staff-level agreement for a $7 billion Extended Fund Facility (EFF) programme.

The IMF announced the three-year 24th programme after Pakistan agreed to bring transparency to the Pakistan Sovereign Wealth Fund and stop preferential treatment for projects by the Special Investment Facilitation Council (SIFC).